Confidential Broker Opinion of Value
409 S Boyle Avenue
Los Angeles, California 90033
32Units
15,862Square Feet
1924Year Built
0.41 AcAcres
Glen Scher
SMDI
Filip Niculete
SMDI
February 2026
February 2026
At LAAA Team, we are dedicated to delivering expert multifamily brokerage services in Los Angeles, helping investors navigate the market with precision, strategy, and results-driven execution. With over 500 closed transactions and $1.6B in total sales volume, our team thrives on providing data-driven insights, strategic deal structuring, and hands-on client service to maximize value for our clients.
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"We are PROACTIVE marketers, not reactive. We don't list online and wait for calls. We pick up the phone, call every probable buyer, and explain why your property is a good investment for them."
The LAAA Team is proud to present 409 S Boyle Avenue, a 32-unit rent-stabilized multifamily property situated in the heart of Boyle Heights, one of Los Angeles' most transit-connected eastside neighborhoods. Originally constructed in 1924 as a two-story wood-frame building, the property comprises 30 studios and 2 one-bedroom units across approximately 15,862 square feet of rentable area. As an RSO asset with vacancy decontrol under Costa-Hawkins, the building offers a buyer predictable in-place cash flow with the ability to reset rents to market upon unit turnover.
What distinguishes this asset from comparable offerings is the depth of capital investment already completed by the current ownership. Over the past several years, ownership has executed more than $400,000 in building system upgrades - including a full 400-amp electrical service with 32 individual 60-amp subpanels (finaled September 2025), a 151-window dual-pane changeout to NFRC-certified units, and a solar hot water system - materially reducing deferred maintenance risk for a new buyer. Additionally, the property holds a Plan Check-approved attached ADU entitlement (approved December 2024) with a second detached ADU application pending.
From a market perspective, Boyle Heights continues to benefit from its immediate proximity to Downtown Los Angeles - just 1.5 miles from the Arts District across the LA River. The property sits a seven-minute walk from the Metro E Line at Mariachi Plaza Station, carries a Walk Score of 84, and is anchored by LAC+USC Medical Center with over 9,600 employees within 1.4 miles. The submarket has recorded rent growth exceeding 3% year-over-year, supported by a 4.9% vacancy rate and limited new multifamily supply.
Boyle Heights is one of Los Angeles' oldest and most culturally rooted neighborhoods, situated directly east of Downtown across the LA River. The area has maintained a distinct residential identity defined by its walkable streetscape, dense housing stock, and strong community institutions - while benefiting from the economic gravity of a rapidly expanding DTLA just 1.5 miles to the west. The Arts District, now one of LA's highest-rent submarkets, sits across the river and continues to drive spillover demand into adjacent eastside neighborhoods where rents remain meaningfully lower.
The property's transit access is a defining attribute. Mariachi Plaza Station on the Metro E Line is a seven-minute walk - approximately 0.3 miles - providing a direct one-seat ride to Santa Monica, Long Beach, and connections throughout the Metro system. The Walk Score of 84 ("Very Walkable") and Transit Score of 69 ("Good Transit") reflect the neighborhood's dense service network. LAC+USC Medical Center - one of the nation's largest public hospital campuses with over 9,600 healthcare workers - sits 1.4 miles from the property, serving as a primary employment anchor.
Boyle Heights' rental market fundamentals support the investment thesis. The submarket has recorded year-over-year rent growth of 3.13%, driven by limited new multifamily supply and sustained demand from a population that is 76.7% renter. The housing vacancy rate sits at 4.9%, well below the threshold that would indicate softening conditions. New construction in the area remains constrained by regulatory overlays and community resistance, which limits the competitive supply pipeline and insulates existing assets from rent compression.
| Location Details | |
|---|---|
| Walk Score | 84 ("Very Walkable") |
| Transit Score | 69 ("Good Transit") |
| Nearest Metro | Mariachi Plaza Station (E Line), 0.3 mi |
| Nearest Freeway | I-5, I-10, I-101 (all within 1 mi) |
| Major Employers | LAC+USC Medical Center (1.4 mi, 9,600+ workers) |
| Grocery | Food 4 Less, local markets within 1 mi |
| Parks | Hollenbeck Park (0.3 mi) |
| Median HH Income | $56,623 |
| Renter Percentage | 76.7% |
| Population | 81,701 |
| Property Overview | |
|---|---|
| Address | 409 S Boyle Ave, Los Angeles, CA 90033 |
| APN | 5174-002-014 |
| Year Built | 1924 |
| Units | 32 (30 Studios, 2 One-Bedrooms) |
| Building SF | 15,862 |
| Avg Unit SF | ~496 |
| Stories / Buildings | 2 Stories / 1 Building |
| Construction | Wood Frame |
| Site & Zoning | |
|---|---|
| Lot Size | 17,832 SF (0.41 Acres) |
| Zoning | [Q]R4-1-RIO-CUGU |
| TOC Tier | 3 |
| Community Plan | Boyle Heights |
| Council District | CD 14 - Ysabel Jurado |
| Parking | 12 Surface Spaces (0.38/unit) |
| Flood / Fire | Outside Flood Zone, Not in VHFHSZ |
| Building Systems & Capital Improvements | ||
|---|---|---|
| Electrical | 400-amp, 32 x 60-amp subpanels | Finaled 9/2025 - NEW |
| Windows | 151 dual-pane NFRC-certified | Permitted 5/2021 |
| Solar | Solar hot water system | Finaled 6/2018 |
| HVAC | Individual 15K BTU direct vent | Replacements 2001-2020 |
| Roof | Flat, Class A/B torch-down | 2009 (17 years old) |
| Plumbing | Original - condition unknown | Water heater replaced 2017 |
| Water Heaters | Solar hot water system | |
| Metering | Electric: individual; Gas/Water: master | Confirmed |
| Regulatory & Compliance | |
|---|---|
| Rent Control | LA RSO (pre-1978, vacancy decontrol applies) |
| Soft-Story Retrofit | NOT Required (confirmed LADBS) |
| ADU Entitlements | Attached ADU - PC Approved 12/2024; Detached - Pending |
| Code Enforcement | 2 Cases on File (nature unknown) |
| Certificate of Occupancy | 0 on file (typical for pre-war) |
| Date | Grantor / Grantee | Sale Price | $/Unit | $/SF | Notes |
|---|---|---|---|---|---|
| 05/2012 | Orion Ventures LLC to SRD Commercial Group LLC | $1,915,500 | $59,859 | $121 | Current owner |
| 07/2007 | East Valley Capital Partners to Orion Ventures LLC | ~$2,135,000 | $66,719 | $135 | Part of multi-property deal ($4.15M combined) |
| 2001 | Goldstein to East Valley Capital Partners | Unknown | - | - | - |
| 1997 | Cal Bay Mtg Group to Goldstein | $385,000 | $12,031 | $24 | - |
The current owner, SRD Commercial Group LLC (Danny Bahng), acquired 409 S Boyle Avenue in May 2012 for $1,915,500 - a basis of $121 per square foot and $59,859 per unit - during the post-Great Financial Crisis recovery period when multifamily pricing in secondary LA submarkets remained well below peak levels. The prior owner, Orion Ventures LLC, had purchased the property in July 2007 as part of a multi-property transaction valued at $4.15 million, near the peak of the pre-recession cycle.
Since acquiring the property, Danny has executed a disciplined capital improvement program totaling more than $400,000 in building system upgrades - including a full 400-amp electrical service (finaled 2025), 151 dual-pane NFRC-certified windows, a solar hot water system (finaled 2018), and multiple HVAC unit replacements. Ownership has also secured ADU entitlements, with an attached ADU receiving Plan Check approval in December 2024 and a detached ADU application pending. At the suggested list price of $3,200,000, the property reflects approximately 67% appreciation over 14 years of ownership.
The property's combination of stable current income, renovation upside, and development optionality positions it to attract interest across multiple buyer segments, supporting competitive pricing and a manageable marketing period.
"At $100,000/unit, isn't this expensive for Boyle Heights studios?"
The most comparable closed sale - 223 N Breed St (32 studios, 1927) - traded at $87,344/unit in January 2026, but that property had 7 vacant units, needed full renovation, and lacked ADU entitlements. The subject's completed $400K+ in capital improvements, 94% occupancy, separately metered electric, and plan-check-approved ADU justify a 15% premium. The median non-distressed RSO comp is $121,742/unit. At $100,000/unit, the subject is priced below the non-distressed median.
"The 1924 building likely needs a full repipe - that's $150,000-$200,000."
This is a legitimate risk that should be scoped during due diligence. However, the current owner has invested over $400,000 in other building systems - electrical, windows, solar, HVAC - demonstrating a pattern of capital reinvestment. The expected sale range of $2.9M-$3.1M provides a buyer with room to absorb a repipe scenario and still acquire at a discount to the non-distressed comp median.
"The cap rate at $3.2M is only 7.59% - that's reasonable but tight."
The 7.59% is a buyer-normalized cap rate that accounts for reassessed property taxes at the new purchase price, professional management, an on-site manager per California law, and capital reserves. The 7.59% falls within the non-distressed comp range of 2.39% to 7.13%, with a median of 5.69%. The pro forma cap rate of 10.43% reflects significant rent upside achievable through natural turnover.
"Unit 116 at $250/month - is that a permanent affordable restriction?"
This requires verification with the owner. If the unit is occupied by a building employee or reflects a data entry error, the below-market rent resolves naturally at turnover. The pricing strategy accounts for the rent roll as reported, including this unit - it is not a hidden liability.
Interactive map available at the live URL.
| # | Address | Units | Sale Date | Price | $/Unit | $/SF | Cap | GRM | Yr Built | Notes |
|---|---|---|---|---|---|---|---|---|---|---|
| S | 409 S Boyle Ave | 32 | Proposed | $3,200,000 | $100,000 | $202 | 7.59% | 6.10 | 1924 | Subject Property |
| 1 | 223 N Breed St | 32 | 01/13/2026 | $2,795,000 | $87,344 | $232 | 7.13% | 8.93 | 1927 | 32 studios/efficiencies; 7 vacant; value-add; orig $3,195K |
| 2 | 323 N Soto St | 40 | 09/30/2024 | $2,500,000 | $62,500 | $241 | 12.34% | 4.86 | 1929 | Court sale; distressed; 13 vacant |
| 3 | 2221 Michigan Ave | 32 | 09/30/2024 | $2,500,000 | $78,125 | $271 | 11.45% | 5.07 | 1926 | Court sale; distressed; same portfolio as #2 |
| 4 | 301 S Boyle Ave | 27 | 05/29/2024 | $3,025,000 | $112,037 | $218 | 5.47% | 8.45 | 1908 | Same street; debt assumption ($1.47M JPM) |
| 5 | 456 S Breed St | 24 | 04/02/2024 | $3,600,000 | $150,000 | $191 | 2.39% | n/a | 1972 | 1972; elevator; 27 parking; 1BD/2BD mix |
| 6 | 571 Fairview Ave | 38 | 03/13/2024 | $4,995,000 | $131,447 | $416 | 5.90% | n/a | 1964 | 37 singles + 1 1BD; pool; mid-century |
| 7 | 2649 Marengo St | 24 | 06/04/2025 | $5,145,000 | $214,375 | $177 | 6.01% | 9.71 | 1989 | NOT RSO (1989); mixed BD; 46 parking |
| Non-Distressed Avg | $120,207 | $264 | 5.22% | 8.69 | ||||||
| Non-Distressed Median | $121,742 | $225 | 5.69% | 8.69 |
223 N Breed St (32 units, $2.795M, 01/2026) - Most Comparable: Nearly identical to the subject - 32 studios in a 1927 building in Boyle Heights. Traded at $87,344/unit and a 7.13% cap rate after 93 DOM, closing at 87.5% of its original $3.195M list price. The key distinction is condition: Breed had 7 vacant units at sale, rents 62% below market, and requires renovation throughout. The subject has completed over $400,000 in capital improvements (400-amp electrical, 151 windows, solar hot water), maintains 94% occupancy, has separately metered electric, and holds plan-check-approved ADU entitlements. These advantages support a 15% premium over Breed, placing the subject at $100,000+/unit.
323 N Soto St (40 units, $2.5M, 09/2024) - Distressed: Court-ordered portfolio sale with 13 vacant units. Traded at $62,500/unit and 52.6% of list price after 150 DOM. This represents floor and distress pricing - not arm's-length market value. The subject is not distressed and should not be priced against this transaction.
2221 Michigan Ave (32 units, $2.5M, 09/2024) - Distressed: Same court-ordered portfolio as Soto, closing at $78,125/unit and 58.1% of list. Originally listed at $4.3M ($134,375/unit), which is more indicative of the seller's perception of market value before the court-mandated discount. Useful only as a floor reference.
301 S Boyle Ave (27 units, $3.025M, 05/2024) - Geographic Match: Located on the same street just five blocks north. Traded at $112,037/unit - a 1908-vintage building with a 1-bedroom unit mix that commands higher per-unit pricing than studios. The sale included a $1.47M debt assumption from JPMorgan Chase. The subject should trade at a modest discount due to its studio product, partially offset by its newer vintage, larger unit count, and recent capital upgrades.
456 S Breed St (24 units, $3.6M, 04/2024) - Different Product: A 1972-built building with an elevator, 27 parking spaces, and a 1BD/2BD unit mix - fundamentally different from the subject's pre-war studios. Traded at $150,000/unit at a 2.39% cap rate reflecting deeply below-market rents. Serves as a ceiling reference only.
571 Fairview Ave (38 units, $4.995M, 03/2024) - Larger / Mid-Century: A 38-unit, 1964-built building with 37 singles, a pool, and mid-century design appeal. Traded at $131,447/unit and a 5.90% cap rate after 63 DOM. The subject is 40 years older with fewer amenities but has a stronger CapEx profile and ADU development upside. A 15-20% discount from Fairview implies $105,000-$112,000/unit for the subject.
2649 Marengo St (24 units, $5.145M, 06/2025) - Non-RSO Outlier: A 1989-built building not subject to the RSO. Its mixed bedroom count, 46 parking spaces, and $214,375/unit price reflect a different product class entirely. Excluded from primary pricing analysis. Its 98.9% SP/LP ratio is notable as a data point on buyer appetite for Boyle Heights multifamily.
Boyle Heights multifamily is actively trading, with seven closed comps identified in the past 12-18 months and three on-market listings in the immediate submarket. Non-distressed SP/LP ratios of 78-99% suggest 10-15% negotiating room from list price is standard for this product type. The weight of non-distressed evidence supports studio product in Boyle Heights trading at $87,000-$131,000/unit, with the subject's completed CapEx profile, ADU entitlements, and 94% occupancy positioning it in the $96,000-$106,000/unit range.
Interactive map available at the live URL.
| # | Address | Units | List Price | $/Unit | $/SF | Cap | GRM | DOM | Notes |
|---|---|---|---|---|---|---|---|---|---|
| A | 2107 E Cesar E Chavez Ave | 30 | $3,795,000 | $126,500 | $307 | 7.23% | 8.35 | 35 | Mixed-use (27 res + 3 commercial) |
| B | 124 N Westmoreland Ave | 30 | $4,350,000 | $145,000 | $196 | 7.29% | 8.16 | -- | All studios; Koreatown; broker says trading 15%+ below list |
The most relevant on-market benchmark is 124 N Westmoreland Ave in Koreatown - a 30-unit, all-studio, 1927 RSO building asking $145,000/unit ($4.35M). Broker intel from Taylor Avakian at Lyon Stahl (February 16, 2026) indicates buyer activity is "below list 15%+" with buyers "interested and writing," implying an expected trade around $123,000/unit ($3.7M). Koreatown is a materially stronger submarket than Boyle Heights - higher rents, stronger tenant demand, better retail amenities - so the subject should be discounted 15-20% from Westmoreland's expected trade price. That produces $98,000-$105,000/unit, consistent with the $100,000/unit suggested list price derived from closed comp analysis.
2107 E Cesar Chavez Ave is a mixed-use property with 27 residential units and 3 commercial spaces, making it an imperfect multifamily comparison. However, the residential component - 27 furnished studios in a 1927 building - is relevant. The asking price of $126,500/unit with a 7.23% cap rate on actual income provides useful context for where the market is pricing studio product in the 90033 zip code.
Interactive map available at the live URL.
| # | Address | Dist. | Rent | SF | $/SF | Yr Built | Units | Condition | Notes |
|---|---|---|---|---|---|---|---|---|---|
| 1 | 308 S Boyle Ave | 0.1 | $1,500 | 400-500 | $3.33 | Pre-1930 | 20 | Renovated | Granite counters, hardwood, stainless; 0.2 mi to E Line |
| 2 | 571 Fairview Ave | 0.6 | $1,895 | ~350 | $5.41 | 1964 | 38 | Renovated | Pool, laundry, A/C; units $1,495-$1,995 |
| 3 | 2707 Pomeroy Ave | 0.9 | $1,575 | 460 | $3.42 | Pre-1960 | 20 | Renovated | Hardwood, granite, new windows, balcony |
| 4 | 207 N Savannah St | 0.7 | $1,595 | 500 | $3.19 | 1932 | 17 | Renovated | Seismic retrofit complete |
| 5 | 2448 Boulder St | 0.5 | $1,495 | 352 | $4.25 | 1964 | 8 | Renovated | Laminate floors, newer appliances |
| 6 | 444 S Chicago St | 0.3 | $1,750-$1,795 | ~600 | $2.99 | Pre-1940 | Small MF | Renovated | Larger studio; priced higher due to size |
| 7 | 529 S Lorena St | 1.1 | $1,650 | 525 | $3.14 | Pre-1960 | Small MF | Updated | East BH / Lorena corridor |
| 8 | 234 N Chicago St | 0.3 | $1,975 | ~450 | $4.39 | Pre-1930 | 16+ | Renovated | Highest comp in core BH |
| 9 | 2019 City View Ave | 0.8 | $1,475 | ~400 | $3.69 | Pre-1950 | Small MF | Updated | Lower end; less renovation |
| 10 | 1849 Sichel St | 1.5 | $1,695 | 350 | $4.84 | Pre-1960 | Small MF | Renovated | Lincoln Heights |
| Scenario | Rent/Mo | $/SF (est. 450 SF) | Basis |
|---|---|---|---|
| Conservative | $1,500 | $3.33 | Floor set by Comps #1, #5, #9. Basic renovation, standard finishes. |
| Moderate (Recommended) | $1,625 | $3.61 | Supported by Comps #3, #4, #6, #7. Standard renovation with granite, LVP/hardwood, updated bath. |
| Aggressive | $1,800 | $4.00 | Supported by Comps #2, #8. Higher-end finishes, Arts District/DTLA spillover tenants. |
The moderate scenario at $1,625/mo is supported by the weight of comparable evidence. The subject's advantages - Metro proximity at 0.3 miles from the E Line, recent systems upgrades that reduce CapEx risk for a renovating buyer, and 32-unit scale - offset its disadvantages, including the 1924 vintage and unknown plumbing condition. The $1,625 range is achievable with a $15,000-$20,000 per-unit renovation and reflects current asking rents for renovated studios in older Boyle Heights buildings.
Important context: these are asking rents, not achieved rents. Actual lease-up may require one to two months of vacancy loss or modest concessions. RSO vacancy decontrol under Costa-Hawkins allows rent reset to market on turnover, but the turnover rate depends on tenant demographics. With approximately 37% of the building occupied by Brilliant Corners voucher tenants, turnover on those units may be lower than average, extending the timeline to fully stabilize the rent roll at pro forma levels.
| Unit | Type | SF | Current Rent | Rent/SF | Market Rent | Market/SF |
|---|---|---|---|---|---|---|
| 101 | Studio | 496 | $1,266 | $2.55 | $1,625 | $3.28 |
| 102 | Studio | 496 | $1,550 | $3.12 | $1,625 | $3.28 |
| 103 | Studio | 496 | $1,500 | $3.02 | $1,625 | $3.28 |
| 104 | Studio | 496 | $1,575 | $3.18 | $1,625 | $3.28 |
| 105 | Studio | 496 | $1,480 | $2.98 | $1,625 | $3.28 |
| 106 | Studio | 496 | $1,600 | $3.23 | $1,625 | $3.28 |
| 107 | Studio | 496 | Vacant | - | $1,625 | $3.28 |
| 108 | Studio | 496 | Vacant | - | $1,625 | $3.28 |
| 109 | Studio | 496 | $1,550 | $3.12 | $1,625 | $3.28 |
| 110 | Studio | 496 | $1,475 | $2.97 | $1,625 | $3.28 |
| 111 | Studio | 496 | $1,100 | $2.22 | $1,625 | $3.28 |
| 112 | Studio | 496 | $1,425 | $2.87 | $1,625 | $3.28 |
| 113 | Studio | 496 | $1,550 | $3.12 | $1,625 | $3.28 |
| 114 | Studio | 496 | $1,650 | $3.33 | $1,625 | $3.28 |
| 115 | 1BD/1BA | 500 | $1,873 | $3.75 | $1,875 | $3.75 |
| 116 | 1BD/1BA | 500 | $250 | $0.50 | $1,875 | $3.75 |
| 201 | Studio | 496 | $1,575 | $3.18 | $1,625 | $3.28 |
| 202 | Studio | 496 | $1,550 | $3.12 | $1,625 | $3.28 |
| 203 | Studio | 496 | $1,600 | $3.23 | $1,625 | $3.28 |
| 204 | Studio | 496 | $1,525 | $3.07 | $1,625 | $3.28 |
| 205 | Studio | 496 | $1,575 | $3.18 | $1,625 | $3.28 |
| 206 | Studio | 496 | $1,550 | $3.12 | $1,625 | $3.28 |
| 207 | Studio | 496 | $1,575 | $3.18 | $1,625 | $3.28 |
| 208 | Studio | 496 | $1,525 | $3.07 | $1,625 | $3.28 |
| 209 | Studio | 496 | $1,550 | $3.12 | $1,625 | $3.28 |
| 210 | Studio | 496 | $1,500 | $3.02 | $1,625 | $3.28 |
| 211 | Studio | 496 | $1,450 | $2.92 | $1,625 | $3.28 |
| 212 | Studio | 496 | $1,575 | $3.18 | $1,625 | $3.28 |
| 213 | Studio | 496 | $1,525 | $3.07 | $1,625 | $3.28 |
| 214 | Studio | 496 | $1,650 | $3.33 | $1,625 | $3.28 |
| 215 | Studio | 496 | $1,200 | $2.42 | $1,625 | $3.28 |
| 216 | Studio | 496 | $926 | $1.87 | $1,625 | $3.28 |
| TOTAL | 32 Units | 15,880 | $43,695 | $2.75 | $52,500 | $3.31 |
Occupancy: 93.75% (30 occupied, 2 vacant). Unit 116 at $250/month is an anomaly - verify with owner. ~12 Brilliant Corners voucher tenants (~37.5% of building).
| Income | Annual | Per Unit | % EGI |
|---|---|---|---|
| Gross Scheduled Rent | $524,339 | $16,386 | - |
| Less: Vacancy (5%) | ($26,217) | ($819) | - |
| Other Income (RSO/SCEP Passthroughs) [1] | $910 | $28 | - |
| Effective Gross Income | $499,032 | $15,595 | 100.0% |
| Expenses | Annual | Per Unit | % EGI |
|---|---|---|---|
| Real Estate Taxes [2] | $38,720 | $1,210 | 7.8% |
| Insurance [3] | $18,672 | $584 | 3.7% |
| Utilities (Water/Sewer/Gas/Trash/Common Electric) [4] | $80,528 | $2,516 | 16.1% |
| Repairs & Maintenance [5] | $28,800 | $900 | 5.8% |
| On-site Manager [6] | $24,000 | $750 | 4.8% |
| Contract Services & Supplies [7] | $11,200 | $350 | 2.2% |
| Administrative & Legal [8] | $8,143 | $254 | 1.6% |
| LAHD Registration [9] | $6,615 | $207 | 1.3% |
| Marketing [10] | $2,000 | $62 | 0.4% |
| Reserves [11] | $9,600 | $300 | 1.9% |
| Other (Permits, State Tax, Misc) [12] | $7,771 | $243 | 1.6% |
| Management Fee (4%) [13] | $19,961 | $624 | 4.0% |
| Total Expenses | $256,010 | $8,000 | 51.3% |
| Net Operating Income | $243,022 | $7,594 | 48.7% |
Property taxes reassessed at 1.21% of $3,200,000 purchase price. The pricing matrix recalculates taxes at each price point.
[1] Other Income: RSO/SCEP passthroughs only ($330 RSO + $580 SCEP from 2024 T-12). No laundry or parking income currently collected.
[2] Real Estate Taxes: Reassessed at 1.21% of $3,200,000 purchase price. Seller currently pays $30,725 on a Prop 13 basis.
[3] Insurance: Seller actual of $18,672 ($583/unit). Within benchmark range for pre-war RSO product.
[4] Utilities: Seller actual verified across 2023 and 2024 operating data. Master-metered gas and water; individually metered electric (tenants pay their own). Includes common area electric.
[5] Repairs & Maintenance: $900/unit based on Tier 4 benchmark. Recent $400K+ in capital expenditures (electrical 2025, windows 2021, solar 2018) substantially reduce near-term repair burden.
[6] On-site Manager: Required per CA Civil Code Section 17995.1 for 16+ units. Free unit + stipend.
[7] Contract Services: Tier 4 benchmark at $350/unit. Includes cleaning supplies, maintenance materials, and landscaping.
[8] Administrative & Legal: Seller actuals for administrative ($4,748) and legal ($3,395). Within benchmark ranges.
[9] LAHD Registration: RSO registration + SCEP fees. Partially passable to tenants under allowable passthroughs.
[10] Marketing: $63/unit turnover advertising budget.
[11] Reserves: $300/unit. Reduced from standard $450 benchmark to reflect recent major capital expenditures (400-amp electrical 2025, 151 windows 2021, solar hot water 2018).
[12] Other: Permits ($2,023) + California franchise/entity tax ($2,923) + miscellaneous ($2,825).
[13] Management Fee: 4.0% of EGI for professional third-party management.
| OPERATING DATA | |
|---|---|
| Price | $3,200,000 |
| Down Payment (45%) | $1,440,000 |
| Number of Units | 32 |
| Price Per Unit | $100,000 |
| Price Per SqFt | $201.74 |
| Gross SqFt | 15,862 |
| Lot Size | 0.41 Acres |
| Approx. Year Built | 1924 |
| RETURNS | Current | Pro Forma |
|---|---|---|
| CAP Rate | 7.59% | 10.43% |
| GRM | 6.10 | 5.13 |
| Cash-on-Cash | 7.61% | 13.92% |
| Debt Coverage Ratio | 1.82 | 2.50 |
| FINANCING | |
|---|---|
| Loan Amount | $1,760,000 |
| Loan Type | New |
| Interest Rate | 6.50% |
| Amortization | 30 Years |
| Loan Constant | 0.0758 |
| UNIT SUMMARY | # | Avg SF | Sched. | Market |
|---|---|---|---|---|
| Studio | 30 | 496 | $1,485 | $1,625 |
| 1 Bed / 1 Bath | 2 | 500 | $1,062 | $1,875 |
| INCOME | Current | Pro Forma |
|---|---|---|
| Gross Scheduled Rent | $524,339 | $624,000 |
| Less: Vacancy (5%) | ($26,217) | ($31,200) |
| Effective Rental Income | $498,122 | $592,800 |
| Other Income | $910 | $910 |
| Effective Gross Income | $499,032 | $593,710 |
| CASH FLOW | Current | Pro Forma |
|---|---|---|
| Net Operating Income | $243,022 | $333,913 |
| Less: Debt Service | ($133,493) | ($133,493) |
| Net Cash Flow | $109,529 | $200,420 |
| Cash-on-Cash Return | 7.61% | 13.92% |
| Principal Reduction (Yr 1) | $19,672 | |
| Total Return (Yr 1) | 8.97% | 15.28% |
| EXPENSES | Current | Pro Forma |
|---|---|---|
| Real Estate Taxes | $38,720 | $38,720 |
| Insurance | $18,672 | $18,672 |
| Utilities | $80,528 | $80,528 |
| Repairs & Maintenance | $28,800 | $28,800 |
| On-site Manager | $24,000 | $24,000 |
| Contract Services | $11,200 | $11,200 |
| Administrative & Legal | $8,143 | $8,143 |
| LAHD Registration | $6,615 | $6,615 |
| Marketing | $2,000 | $2,000 |
| Reserves | $9,600 | $9,600 |
| Other | $7,771 | $7,771 |
| Management Fee (4%) | $19,961 | $23,748 |
| Total Expenses | $256,010 | $259,797 |
| Expenses as % of EGI | 51.3% | 43.8% |
| Expenses / Unit | $8,000 | $8,119 |
Highlighted row represents the suggested list price. Property taxes recalculated at 1.21% of each purchase price, which adjusts NOI and cap rate at every row.
| Purchase Price | Current Cap | Pro Forma Cap | Cash-on-Cash | $/SF | $/Unit | PF GRM |
|---|---|---|---|---|---|---|
| $3,500,000 | 6.84% | 9.44% | 5.93% | $221 | $109,375 | 5.61x |
| $3,450,000 | 6.96% | 9.59% | 6.19% | $218 | $107,812 | 5.53x |
| $3,400,000 | 7.08% | 9.75% | 6.46% | $214 | $106,250 | 5.45x |
| $3,350,000 | 7.20% | 9.91% | 6.73% | $211 | $104,688 | 5.37x |
| $3,300,000 | 7.33% | 10.08% | 7.01% | $208 | $103,125 | 5.29x |
| $3,250,000 | 7.46% | 10.26% | 7.31% | $205 | $101,562 | 5.21x |
| $3,200,000 | 7.59% | 10.43% | 7.61% | $202 | $100,000 | 5.13x |
| $3,150,000 | 7.73% | 10.62% | 7.92% | $199 | $98,438 | 5.05x |
| $3,100,000 | 7.88% | 10.81% | 8.24% | $195 | $96,875 | 4.97x |
| $3,050,000 | 8.03% | 11.01% | 8.57% | $192 | $95,312 | 4.89x |
| $3,000,000 | 8.18% | 11.21% | 8.91% | $189 | $93,750 | 4.81x |
| $2,950,000 | 8.34% | 11.42% | 9.26% | $186 | $92,188 | 4.73x |
| $2,900,000 | 8.51% | 11.64% | 9.63% | $183 | $90,625 | 4.65x |
| $2,850,000 | 8.68% | 11.86% | 10.01% | $180 | $89,062 | 4.57x |
| $2,800,000 | 8.85% | 12.10% | 10.40% | $177 | $87,500 | 4.49x |
The suggested list price of $3,200,000 ($100,000 per unit) is anchored primarily by comparable sales in the Boyle Heights submarket. The most comparable closed sale - 223 N Breed St, a nearly identical 32-studio building that traded in January 2026 at $87,344 per unit - serves as the pricing floor. The subject commands a 15% premium over Breed due to completed capital improvements ($400,000+ in electrical, windows, solar, and HVAC), superior occupancy (94% vs 78%), entitled ADUs (Planning Commission approved December 2024), and separately metered electric. This premium is further supported by 301 S Boyle Ave at $112,037 per unit (same street, larger units) and the median non-distressed sale price of $121,742 per unit.
The expected sale range of $2,900,000 to $3,100,000 accounts for the 10-15% negotiating discount that is standard in this submarket, where the average sale price-to-list price ratio among non-distressed comps is 87%. The pricing is further contextualized by the on-market benchmark at 124 N Westmoreland Ave in Koreatown - a 30-unit, all-studio, 1927-built RSO building asking $145,000 per unit, with broker intel indicating an expected trade at approximately $123,000 per unit. Applying a 15-20% Boyle Heights location discount yields $98,000 to $105,000 per unit, consistent with the suggested list of $100,000 per unit.